appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

appConfig

filter

json

liveArticle

Reuters

A consortium led by state-owned pharmaceuticals giant Sinopharm has revived a take-private bid for China Traditional Chinese Medicine Holdings (China-TCM), the Hong-Kong-listed drug maker said on Wednesday, valuing it at HK$23.16 billion (US$2.96 billion).
China National Pharmaceutical, also known as Sinopharm, had in 2021 decided against a possible privatisation of China TCM.
Sinopharm, the parent of China-TCM, already holds a 32.46 per cent stake in China-TCM and has offered to pay HK$4.6 per share in cash to buyout the drug maker.
The offer price represents a 34.11 per cent premium to the traditional medicine maker’s closing price of HK$3.43 per share before trading in the stock was halted.


The deal, if goes through, would be one of the biggest privatisation deal for a Hong Kong-listed firm since Haier Electronics’ US$5 billion acquisition in 2020.
Sinopharm has also indicated it will not raise the offer price to take China-TCM private.
The offer comes as the drug maker lags a surge in valuations for many mainland-listed Chinese medicinal firms in and around the Covid-19 pandemic.
“Whether the privatisation would be successful this time still depends on the outcome of negotiations among different parties, which is full of uncertainty,” Xinyao Wang, a Hong Kong and China healthcare analyst at Smartkarma, said in a note.
China approves trials of home-grown mRNA vaccines as cases surge
The potential deal would add to a surge in strategic investors and buyout firms tapping Hong Kong for take-private opportunities. Buyers often cite undervalued shares as a reason for the deals.
Media reports had earlier emerged in 2022 over Sinopharm and its advisers preparing a potential offer of about HK$6 for each China-TCM share.
China TCM shares had jumped as much as 10 per cent to HK$3.43 on Wednesday, taking its market value to HK$16.9 billion.
The drug maker had in late January said it expects its 2023 net income to likely increase by 85 per cent to 95 per cent.


To keep up with China’s fast-changing consumers, MNCs adapt via local alliances

Jiangsu 11.5b yuan brokerage merger marks new phase of consolidation

JD.com’s US$2.6 billion bid for Germany’s Ceconomy faces deeper EU scrutiny

Failed M1-Simba merger prolongs Singapore’s cutthroat telco price war

Mergers & Acquisitions

Sinopharm offers to take Hong Kong-listed China-TCM private in nearly US$3 billion deal

Sinopharm has revived a take-private bid for China Traditional Chinese Medicine Holdings. Photo: Shutterstock

Are zombie cordyceps real in ‘The Last of Us’? Humans turn the table on bug-eating parasitic fungus in China

The cordyceps cultivated by HEC in the Yidu facilities in Hubei province, China. Photo: Handout

A laboratory at HEC Health’s cordyceps research center in Dongguan, Guangzhou province. Photo: Handout 

A dried sample of the ophiocordyceps sinensis, more commonly called the caterpillar fungus, on sale at Top Century Medicines Pharmacy at the Imperial Hotel in Hong Kong on July 18, 2016. Photo: David WONG

Nepalese foraged for Yarchagumba on meadows 4,000 metres above sea level in the Himalayan mountains on June 9, 2012 in the Dolpa district of Nepal. Photo: AFP.

Ronny Tsang, Assistant Commissioner of Customs and Excise Department showed some real and fake samples of ophiocordyceps sinensis after a seizure on 15 December 1995.

Traders examined a haul of the ophiocordyceps sinensis in a Lhasa market on February 25, 2014. Photo: Xinhua

HEC’s cordyceps cultivation base in Hubei province, China produces around 50 tons of cordyceps a year. Photo: Handout

Traditional Chinese medicine made easy and tasty: an entrepreneur develops TCM-based supplements for women who ‘don’t have time to boil herbs’

The full collection of Nooci products and its two crossover drinks developed with Hong Kong brand Matchali. Photo: Nooci

Wellness brand Nooci’s three plant-based products: ReNoo Women’s Longevity, Noo Air Nasal Relief and Noo Moon Menstrual Support. Stephanie Tan, the founder of Nooci, talks about the principles of traditional Chinese medicine. Photo: Nooci

Stephanie Tan (left) is the founder of Nooci. Tan is an entrepreneur who wants to make traditional Chinese medicine (TCM) more accessible and bring it to the masses. Photo: Nooci

The full collection of Nooci x Matchali drinks and Nooci products. Photo: Nooci

Chestnut Yam ReNoo Latte. Photo: Nooci

Hojicha Coix Seed Lemon Tea. Photo: Nooci

Chinese TCM stocks are next to fly as Beijing touts traditional treatment for Covid-19 symptoms

Traditional medicine makers are the latest beneficiairies of Beijing’s zero-Covid pivot: Photo: AFP 

Chinese TCM stocks are the latest beneficiaries of Beijing’s zero-Covid pivot. Photo: Shutterstock.

Business

Companies

China Business

Investor Relations

Markets

Sinopharm, the parent of China-TCM, already holds a 32.46 per cent stake in China-TCM and has offered to pay HK$4.6 per share in cash to buyout the drug maker
Sinopharm says it will not raise the offer price to take China-TCM private


A consortium led by state-owned Sinopharm has revived a take-private bid for China-TCM, the Hong-Kong-listed drug maker said on Wednesday, valuing it at US$2.96 billion.


Traditional Chinese medicine (TCM)

Stocks

Medicine

Sinopharm